Bleak Q2 outlook dents TCS market capitalisation by Rs. 31,723 crore

TCS saw an erosion of Rs. 31,720 crore in investors' wealth during the week, triggered by the company warning of weak second quarter revenues. In Picture: A broker reacts while trading at his computer terminal at a stock brokerage firm in Mumbai, India, February 26, 2016 (representational image).Reuters file

Tata Consultancy Services (TCS) suffered a massive erosion of Rs. 31,723.89 crore in market capitalisation to Rs. 4,63,543 crore during the week ended Sept. 9, taking the steepest hit among the top 10 companies in India. Four of the 10 companies collectively lost Rs. 41, 693 crore. TCS managed to gain marginally on the last trading day of the week to close at Rs. 2,352.50.

The other big losers of the week included ITC, Infosys, HDFC and Coal India Ltd. On the other hand, Reliance Industries Limited (RIL), HDFC Bank, ONGC, State Bank of India (SBI) and Hindustan Unilever (HUL) gained.

In the ranking amongst the top 10 companies, TCS retained its numero uno position followed by RIL, HDFC Bank, ITC and Infosys.

Tata Consultancy Services (TCS) shares tumbled almost 7 percent on Thursday on the Bombay Stock Exchange (BSE), a day after the company in a regulatory filing that it was witnessing "sequential loss of momentum" in its key banking, financial services and insurance (BFSI) vertical.

TCS, India's largest software services exporter, indicated that its BFSI clients in the U.S. are being cautious and holding back on discretionary spending.

"Inflation will start coming down because there was a base effect in the last two months, which was actually pushing inflation up. That effect will moderate in the coming months. So, I see no reason why we shouldn't be looking at a small rate cut this year," she told IANS.